Gunpowder Capital Corp.'s investee company, BitBlox Technologies Inc., a leading-edge technology company that focuses on the mining of cryptocurrencies like Ether (ETH), Bitcoin (BTC) and Zcash (ZEC), and the development of next-generation cryptocurrency technologies, has launched its first proprietary cryptocurrency mining facility, located in Southwestern Ontario. BitBlox has also entered into an agreement with Gunpowder to provide BitBlox back office administration support. BitBlox and Gunpowder expect to expand their strategic relationship in the coming months.

Cryptocurrency "mining" is the term used for transaction verification services provided within a blockchain network. The verification process uses computing and cryptography to solve complex mathematical transactions. Successfully verified transactions get added to a public ledger, more commonly known as the blockchain. Individual blocks, added by cryptominers like BitBlox, are called a proof of work (POW) and results in the release of new currency or "coins" &amp;#8212; which are the incentive for miners participating on the network.

As demand increases within the crypto economy, higher fees for verifying transactions have added to the Crypto Mining value proposition. BitBlox Technologies offers a targeted approach to operational efficiency that takes best advantage of the enhanced profit potential within the sector. Located in a 5,000-sq. ft. leased facility (with an option to expand to 10,000 sq. ft.), BitBlox has retrofitted its cryptocurrency mining facility for optimized performance of its operations. State of the art facility solutions are used, with mining hardware customized to be more power efficient and deliver higher computational ability than most other systems generally available on the market. Highly optimized hardware configurations and strategic and advanced facility planning translates into a well-tuned and efficient mining infrastructure and capability, positioning BitBlox with a market advantage.

For its initial Proof of Concept (POC), BitBlox is deploying 126 GPU card equivalents of processing capability, with a potential planned scale-up to 8000 GPU card equivalents within a six-month timeframe. The operation has a primary focus on GPU mining to harvest value within the burgeoning alt coin market, which the Company anticipates growing larger as the smart contract functionality unique to the Ethereum blockchain, as one example, sees further adoption. At the same time, the BitBlox mining operation takes a balanced approach, switching to ASIC mining on the Bitcoin blockchain at times when rates of return are proved more favorable.

Moving forward, the BitBlox vision is to constantly seek better ROI through investments in leading-edge and proprietary technology. As the blockchain continues to scale and see adoption as the global network for value transfer, BitBlox is investing in the development of crypto-mining IP and other relevant applications. The Ethereum blockchain in particular is designed as a matrix for smart contract functionality. BitBlox envisions the building out of this technology through development of machine learning and other forms of AI. Its business priority is to invest in R&#38;D to enhance ongoing value capture within in this emerging sector.

About BitBlox Technologies Inc.

BitBlox Technologies Inc., is building a high value cryptocurrency enterprise. BitBlox mines cryptocurrencies, such as Ether and Zcash, and offers value-added technology services for the cryptocurrency market, such as crypto-mining proprietary software.

Offering a complete ecosystem of value-creation, BitBlox cryptocurrency mining will provide the basis for an innovative token product that is monetized according to mining profit margins. A percentage of these profits will be invested in the development of a proprietary Artificial Intelligence ("AI") based technology. Overall, BitBlox takes an approach that enables the company to scale, and respond to changing conditions, within the still-emerging cryptocurrency industry.

Part of a wave of emerging technologies, cryptocurrencies are indivisible from a new virtual economy that is powered in part by smart contract and other AI-based integrations. Cryptocurrency and value mining are central to this new paradigm. Taking a robust and diversified business approach, BitBlox Technologies Inc. is poised to capture value in successive phases as this industry continues to scale.

About Gunpowder Capital Corp.

Gunpowder Capital Corp., is a merchant bank and advisory services firm based in Toronto, Ontario, Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long term position and view.

GPC isn't just your typical cyprtocurrency stock. This company already owns numerous cash flow positive ventures including many rental properties. They made their first profit last quarter of $128K. Now their reinvesting all their profits into new ventures like BitBlox.

Gunpowder Capital Corp. has released a summary of its financial results for the three and nine months ended Sept. 30, 2017. Key highlights include:

The corporation posted its first-ever quarterly profit, which amounted to $128,132. This result was heavily driven by the successful completion of one of the company's go-public mandates; and while the company continue to build out recurring revenues, these large gains tied to go-public work are expected to continue and add large quarterly spikes in revenue and profit when completed.Q3 2017 revenues increased to $680,501 from $45,336 in Q3 2016, representing a 1,401-per-cent increase.Q3 2017 revenues increased to $680,501 from $255,184 in Q2 2017, representing a 167-per-cent increase for the three-month period.Year-to-date 2017 (first nine months) revenues were $1,029,876 versus $79,725 for the first nine months of 2016, representing a 1,192-per-cent increase.Q3 2017 fully diluted earnings per share improved to nil versus a fully diluted loss of three cents recorded for the same time period last year.Total assets increased to $7,739,972 in Q3 2017 from $2,838,587 as at Dec. 31, 2016, representing a 173-per-cent increase.

The corporation's interim unaudited condensed consolidated financial statements and management discussion and analysis for the three and nine months ended Sept. 30, 2017, and 2016 have been posted both on the corporation's SEDAR profile page and on the corporation's website.

Paul Haber stated: "Our business model has both demonstrated and as shown continued momentum in Q3 2017, and we expect the momentum in our business to continue. Despite the fact that our business model is still in its infancy, the corporation recorded year-to-date revenues of $1,029,876, which is a corporate record. Furthermore, I am very pleased that the corporation posted its first-ever quarterly profit. I, and the rest of the business development team, remain focused in sourcing revenue generating assets to acquire and seeking out profitable business deals that the corporation can enter into."

Frank Kordy stated: "I'm extremely pleased by the very strong performance that occurred in Q3. As I previously stated at our AGM [annual general meeting], since making key operational and structural changes to the corporation, we have gained substantial momentum in our business model throughout fiscal 2016 and, thus far, throughout fiscal 2017. This momentum is reflected in the dramatic increase in the corporation's total assets ledger and can easily be seen by the corporation's rapidly increasing revenue streams. The management team will continue to work hard in advancing the corporation forward, and we will remain focused on increasing the corporation's asset pool and incoming revenue streams."

About Gunpowder Capital Corp.

Gunpowder Capital is a merchant bank and advisory services firm based in Toronto, Ont., Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder offers debt financing (including mezzanine and bridge loans), equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long-term position and view.

Toronto, Ontario--(Newsfile Corp. - January 8, 2018) - Gunpowder Capital Corp. (CSE: GPC) (CSE: GPC.PR.A) (OTCQB: GNPWF) (FSE: YS6N) ("Gunpowder" or the "Corporation") announced today that it has entered into agreements with BitBlox Technologies Inc., ("BitBlox") a new generation Cryptocurrency Mining and Technology Company focused on the mining of Ethereum, BitCoin and Zcash cryptocurrencies and the development of cryptocurrency technologies.

Next generation cryptocurrency mining is a high value enterprise approach using computing and cryptography to solve complex mathematical transactions. Successfully verified transactions get added to a public ledger, more commonly known as the blockchain. Individual blocks added by cryptominers, like BitBlox, are called a proof of work (POW) and results in the release of new currency or "coins" — which are the incentive for miners participating on the network.

Gunpowder Capital Corp., has participated in BitBlox's recent non-brokered Token Unit financing which was sold directly by Bitblox to accredited investors. Each Token Unit consists of one Token and one common share purchase warrant, which is automatically exercised for no additional consideration into one common share of Bitblox immediately prior to a liquidity event of Bitblox. The Token also has the right, on a pro-rata basis, to participate in Bitblox's profit sharing program, which can reach up Thirty-five percent (35%) of the quarterly profit of Bitblox as determined by Bitblox's Board of Directors.

Gunpowder purchased 100,000 Token Units at price of $0.05 CDN per Token Unit for a total commitment of Twenty Thousand ("$20,000.00") CDN. BitBlox raised a total of Three Hundred Sixty-Three Thousand Dollars ("$363,000.00") CDN in this recent round.

GPC has also been retained by BitBlox for a fee of Five Thousand ("$5,000.00") CDN per month to provide BitBlox back office administration support. Commencing at some point in Q1 of 2018, it is anticipated that BitBlox will also retain GPC to act as a financial advisor to BitBlox.

Mr. Paul Haber Stated: "Cryptocurrencies are perhaps the most exciting sector in the markets today and we are extremely pleased to be working with BitBlox Technologies Inc. We feel that Cryptocurrency Mining is a big opportunity for those with the right strategy and BitBlox has an effective strategy in place to reduce the costs associated to power a mining operation which can be vast. Between the costs of dedicated hardware, the power and cooling needed to support it, and the connectivity needed to contact Cryptocurrency networks, there's a balance to find between the costs of mining and the potential gains. We feel BitBlox has found that balance and that BitBlox has an effective strategy in place to cap the costs associated in the mining process and therefore we anticipate that BitBlox has the potential in becoming highly profitable faster than its competitors."

About BitBlox Technologies Inc.

BitBlox Technologies Inc. is building a high value cryptocurrency enterprise. BitBlox mines cryptocurrencies, such as Ether and ZCash, and offers value-added technology services for the cryptocurrency market, such as crypto-mining proprietary software.

Offering a complete ecosystem of value-creation, BitBlox cryptocurrency mining will provide the basis for an innovative token product that is monetized according to mining profit margins. A percentage of these profits will be invested in the development of a proprietary Artificial Intelligence ("AI") based technology. Overall, BitBlox takes an approach that enables the company to scale, and respond to changing conditions, within the still-emerging cryptocurrency industry.

Part of a wave of emerging technologies, cryptocurrencies are indivisible from a new virtual economy that is powered in part by smart contract and other AI-based integrations. Cryptocurrency and value mining are central to this new paradigm. Taking a robust and diversified business approach, BitBlox Technologies Inc. is poised to capture value in successive phases as this industry continues to scale.

Gunpowder Capital Corp., is a merchant bank and advisory services firm based in Toronto, Ontario, Canada. Gunpowder invests in both publicly traded and private businesses that have successful management teams and attractive economic models. Gunpowder partners with these businesses to support their growth initiatives with its proven methodology of appropriate financing and structured exits. Gunpowder offers debt financing, including mezzanine and bridge loans, equity financing and advisory services. Gunpowder is also building a portfolio of companies in which it takes a long term position and view. For more information please visit www.gunpowdercapitalcorp.com.

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.